1. Sacramento Housing Market Forecast Appraisal Institute www.thegregorygroup.com 1 © 2015 The Gregory Group February 5, 2016

2. © 2015 The Gregory Group 2 Source: Multiple Listing Service Number of Listings Versus Number of Sales Average Listings = 4,495 Average Sales = 2,228 (50%) Average Listings = 4,383 Average Sales = 2,02 (48%) Average Listings = 8,694 Average Sales = 2,998 (34%)

3. © 2015 The Gregory Group 3 Source: Multiple Listing Service Months of Inventory

4. © 2015 The Gregory Group 4 Source: Multiple Listing Service Existing Home Average Sales Price December 2015 ($359,000) is 76% of the high ($472,000)

5. © 2015 The Gregory Group 5 Source: The Gregory Group New Home Price Versus Existing Home Price Average 22% Difference Average 34% Difference

6. © 2015 The Gregory Group 6 Source: Multiple Listing Service Existing Home Average Days on Market

7. © 2015 The Gregory Group 7 Source: Multiple Listing Service REO Sales/Short Sales/Non-Distressed Sales December 2015 = 6%

8. © 2015 The Gregory Group 8 Source: Zillow Real Estate Research, The Gregory Group Median Rental Price

9. © 2015 The Gregory Group 9 Source: The Gregory Group New Home Sales

10. © 2015 The Gregory Group 10 Source: The Gregory Group Top ten communities account for 82.5% of all new-home sales Only one top ten community has an average price that is less than $400,000 Only three top ten communities have an average price that is less than $450,000

11. © 2015 The Gregory Group 11 Source: The Gregory Group New Home Sales Per Project Per Quarter

12. © 2015 The Gregory Group 12 Source: The Gregory Group 82.0%

13. © 2015 The Gregory Group 13 Source: The Gregory Group New Home Pricing Previous High (2Q/2006) = $498,027 Current Price (4Q/2015) = $472,397 (95%)

14. © 2015 The Gregory Group 14 Source: The Gregory Group New Home Sales By Price Range Q4/2005Q4/2015 250 Total Projects143 Total Projects 38 Attached Projects (15.2%)7 Attached Projects (4.9%) 27 Detached Projects on Lots < 4,000 SF (10.8%) 35 Detached Projects on Lots < 4,000 SF (24.5%) 17 Projects w/Average Price < $300,000 (6.8%)10 Projects w/Average Price < $300,000 (6.9%)

15. © 2015 The Gregory Group 15 Source: The Gregory Group Home Size and Price Per Square Foot

16. © 2015 The Gregory Group 16 Source: The Gregory Group New Home Price to Household Income Ratio

17. © 2015 The Gregory Group 17 Source: The Gregory Group New Home Inventory 2,326 Units 214 Projects 728 Units 104 Projects

18. © 2015 The Gregory Group 18 Source: The Gregory Group Proposed Projects Market AreaNumber of Units Placer County65,000 Folsom10,750 El Dorado Hills7,000 Hwy 50 Corridor (Sac/RC)90,000 Elk Grove/Laguna10,000 Natomas5,000 West Sacramento5,750 Sutter/Yuba42,000 Total (Not Inclusive):235,500

19. © 2015 The Gregory Group 19 Sacramento Population Change 2015 - 2025 Millennials First-Time/First-Time Move-Up Affordability (Smaller Lots/Apartments) Livable/Walkable Communities Baby-Boomers Move-Down/Move-Across One-Story Living (in a 1 – 2 story home) Active-Adult/Active Community Focused Walkability Close (but not too close) to Family Gen-X Move-Up Big-Box/Value Ratio A Home to Grow Into Master Planned Communities Good Schools Community Focused

20. © 2015 The Gregory Group 20 Source: The Gregory Group Building Permits 1991 – 1997 (Seven Years) Average = 9,763 Minimum = 8,538 (87%) Maximum = 10,698 (110%) 2009 – 2014 (Six Years) Average = 3,454 Minimum = 2,637 (76%) Maximum = 4,439 (129%)

21. © 2015 The Gregory Group 21 Source: The Gregory Group New Home Sales -- Projection

22. © 2015 The Gregory Group 22 Source: The Gregory Group New Home Price -- Projection

23. The Gregory Group 23 Regulations, Fees, Etc. Water Fees Rising Costs, Construction Workers Competitive Product Types Flat Land development Move-Up Housing Big-Box Homes Bay Area Buyer/Southern California Buyer Changing Buyer Attitudes First-Time/Last-Time—Its All About Demographics An abundance of future projects Placer County Folsom Highway 16 Corridor Natomas Challenges and Opportunities

24. Real Estate Information and Consulting Services Folsom 101 Parkshore Drive, Suite 100 Folsom, CA 95630 (916) 983-3524 info@thegregorygroup.com www.thegregorygroup.com 24 Irvine 18201 Von Karman, Suite 460 Irvine, CA 92612 (949) 247-8851 info@thegregorygroup.com www.thegregorygroup.com